Management / UK firms losing £11 billion from poor customer service, says report

UK firms losing £11 billion from poor customer service, says report

UK companies are losing £11 billion a year due to poor customer service, according to research by cloud technology provider NewVoiceMedia.

However, this figure was down £1.2 from research undertaken in 2013, which reported companies were losing £12.2 billion a year.

The number of UK consumers who report leaving a business due to inadequate customer experiences also decreased, from 50 per cent in 2015 to 42 per cent in 2013.

The top reasons given for leaving were consistent with the previous study and included: feeling unappreciated (44 per cent), unhelpful/rude staff (35 per cent), being passed around to multiple people (33 per cent), not being able to get answers (27 per cent), being fed up of queuing (27 per cent) and not being able to speak to a person (25 per cent).

Jonathan Gale, CEO of NewVoiceMedia, said: “With revenue being transferred between companies at an alarming rate, this research highlights the considerable impact that customers have on a business’s success.

“Customer experience is the key differentiator, and by doing it well, organisations can drive the customer acquisition, retention and efficiency that make leading companies successful.”

A majority of respondents (49 per cent) indicated emailing as their preferred method of communication with a business, yet 61 per cent considered calls to be the quickest way of resolving an issue.

Consumers flagged being kept on hold as the top reason (48 per cent) they disliked calling companies. Respondents also noted not being able to speak to a ‘real person’ straight away (42 per cent), having to repeat info to multiple agents (39 per cent), the cost of calling (38 per cent) and needing to navigate multiple menus (36 per cent) as off-putting.

On average, respondents indicated they would only hold for up to 11 minutes before hanging up.

Consequently, only 27 per cent suggested calls were the most effective way to resolve an issue. Email (27 per cent) and social media (18 per cent) were other channels respondents touted as ‘effective’ in settling customer service issues.

Faced with poor customer service, more than half (52 per cent) of respondents would write to complain, 47 per cent would never use the offending company again, 40 per cent indicated they’d change suppliers, 20 per cent would post an online review, 16 per cent would tell friends or colleagues not to use the company and 16 percent would complain publicly via social media.

On the contrary, if provided with good service, customers would be more loyal (68 per cent), recommend the company to others (59 per cent), use the company more frequently (34 per cent) and spend more money (30 per cent).

Only 10 per cent claimed good service would not affect their relationship with the business.

 

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